Hairdresser asking me to pay in cash

[Sally3490]

I've been going to my hairdressers for about 10 years. It's quite pricey £160 for full highlights and a cut (London). When I was last in they asked if I would pay in cash in future. The ATM is on route so in theory I could, but it adds some level of inconvenience and I'd rather not be carrying that amount of cash with me. But also, I feel it's damn cheeky. They are charging alot of money and should be paying their taxes. AIBU?

Tax unpaid by all businesses works out at £36.7bn a year, well over £500 per head of population. I never pay cash in hand to any small businesses such so it’s not me driving this. There must be a heck of a lot of gullible fools thinking that ‘oh yes, it’s not evasion but the cost of bank charges’ out there!

Massive part of VAT evasion is businesses approaching the VAT registration threshold and then deciding to just take cash instead of bank transfers and keeping the cash off the books to avoid having to register. They need to drop the VAT registration threshold to £20k-ish so every business has to register.

My hair dresser takes bank transfers or cash because she rents a chair rather than owning a full salon. £160 is a lot to take out in cash, I agree.

I always pay in cash fory haircuts in cash, as they don't have a card machine. Admittedly mine only costs a tenner though.

Card payments are a huge drain for small businesses, so I always carry cash for use where I can

This is true and why (in Portugal at least - I'm not as familiar with the other places) you'll often find small businesses with an old dusty looking sign saying "sorry our card machine is broken".

They are also dodging tax.

My hairdresser prefers cash because of the fees associated with her online booking system and her card machine. She showed me a spreadsheet once with the percentage of her taking that were going on service charges for these two systems and it was eye watering. I now always bring cash because it helps her keep her charges reasonable.

Paying cash into a business bank account usually costs approx 75p per £100. But then you have to take the money to the bank, there ms an increased risk of theft, and you have to make a manual entry in your accounts to record the transaction. Cash is riskier for the business receiving it and a bigger administrative hassle.

Card payments in comparison are usually about £1.30 per £100, you can get it down as low as 80p if you shop around but you might have a machine rental cost. Your accounts are far far easier though, as is making tax digital, invoicing, self assessment etc. you never have to schlep to the bank. the biggest downside though is that all transactions are easily traced so you’d have to pay tax on them. Which is why people claim ‘cash is king’.

People who are running legitimate businesses prefer cards.

For the same reason folk walk out when it is cash only.

There's also the fees from online booking systems though, and it does all add up. I paid my hairdresser by bank transfer for 10 years whilst she was running a mobile business using a paper based diary. It's only since she opened a salon five years ago and set up online booking and card payments that she's started asking for cash payments once she realised how significant her payment overheads had become. As I said I've seen the spreadsheet justifying that decision and the fees she was paying were significantly more than you suggest. I've got no reason she is avoiding tax, and in fact given her husband's profession I think it's highly unlikely.

People are still using the card machine costs argument to justify taling cash and avoiding tax but it's simply not true. Very low cost options are a available to small businesses now.

I used to pay my physio, my osteopath and my running club subs by bank transfer because they all avoided cards because of the cost, but they all have affordable card paymemts now.

Schools have gone cashless because it saves them money, not because it costs them.

I.e. anyone who was already putting the money through the books prefers card payments.

If I can help a small business get one over on the tax man I will every chance!

I pay my hairdresser by bank transfer so they don't pay fees on the card machine! Can you ask if you can do that?

Then other small business are subsidising their fraud and you are complicit

My hairdresser is cash only I don’t see the problem it’s not an inconvenience to me..not that long ago majority of people paid cash it’s only more card now since covid.. my mum and dad only ever use cash it’s all they’ve ever been used to .. I use cash a lot myself cash is king after all

Banks charge businesses to count cash, so either way they have to pay banks something. That is a lot of cash to carry; I would say it’s to avoid paying tax.

It is most definitely expensive to have card machines and some like my work actually take 5 days to clear in the bank. Dow many people at the moment have the stance of cash is king. If you’re happy with them as I assume you are after ten years then why cause a scene about the whole thing

My hairdresser prefers cash due to card charges.

It’s definitely some kind of dodge whether it’s tax or something else.

my brother in law likes to work cash in hand so he can avoid paying child maintenance 😢😡 I also assume it helps with claiming whatever benefits he receives. Makes me really angry.

They’re really not. And you have to pay fees to pay cash into a business account.

I haven't read the full thread but card fees are astronomical and bank transfer is a PITA because people often don't remember to do it straight away so time is spent chasing.

£160 isn't a lot of money when you take into consideration their time, cost of products, rent and utilities.

Merchant fees are just an extra bill that if it can be avoided by cash then fair enough.
Next thing will be a price hike because the card fees are swallowing a chunk of profit.
Years ago you could pass the card fee onto client but the law changed in 2017? I think.

I don’t see the problem, pay in cash if it’s not a major inconvenience and you like your hairdresser

I pay my hairdresser by bank transfer (he works from a home salon). Convenient for both of us! Can you ask to do that?

I’d pay her cash, I pay mine with cash.

I’m actually making a conscious effort at the moment to use cash again as I’d stopped completely. I was visiting a seaside town this weekend and there were signs up everywhere asking for cash…. There was even a billboard that said ‘Cash is King’

I know we’ve become very dependent on cards but I think we should all use the good old pound coin a bit more!

Wow whilst nurses, teachers, care workers and the rest of us non self employed have to pay our taxes. How is that fair?

Nobody wants a cheque